INTERNATIONAL MARKETING MANAGEMENT

UNIT 1
Global marketing mainly deals with the process of identifying the market, market targeting, and
selection of entry mode, market mix and different strategies that can be used to gain
competitive advantage in the international market. Consumers in the global market are also
very diverse since they come from different regions of the globe. These consumers are different
in terms of purchasing power, preferences and other behaviours depending with their locality.

Marketers in the global market have to use different approaches for different market segments
in order to meet the demands of their customers. Cultural differences also play an important
role when marketers are identifying their market segments as well as choosing the products to
be distributed in the divergent regions. The fact that consumers are different requires global
companies also to come up with a product mix that will cater for the needs of their diverse
customers.
There must be at least three major dimensions to the spills of international marketing:
1. Competence in marketing, with a sound grasp of marketing concepts, tools and techniques.
2. Ability to perceive patterns of consumer behaviour in different countries and the ability to
evaluate the essential differences and similarities between markets.
3. Management skill to organise, plan, co-ordinate and control an operation of considerably
greater complexity particularly in its human relationships – than that involved in the home
market.
The scope of international marketing essentially includes exporting of goods and services in
foreign markets. The exporter performs various activities, other than exporting the goods and
services.

These activities are:

1. Establishing: A branch in foreign market for processing, packaging or assembling the

goods according to the needs of the markets. Sometimes complete manufacturing is
carried out by the branch through direct investments.
2. Joint Ventures and Collaborations:
 International marketing includes establishing joint ventures and collaboration in foreign
countries with some foreign firms for manufacturing and/or marketing the product. Under
these arrangements, the company works in collaboration with the foreign firm in order to
exploit the foreign markets.
3. Licensing Arrangements:

The company, under the system, establishes licensing arrangements with the foreign term
whereby foreign enterprises are granted the right to use the exporting company’s know-
how, viz., patents, processes or trademarks according to the terms of agreement with or
without financial investment.

4.Consultancy Services:
Offering consultancy services are also covered in international marketing scope. The exporting
company offers consultancy services by undertaking turnkey projects in foreign countries. For
this purpose, the exporting company sends its consultants and experts in foreign countries who
guide and direct the manufacturing activities on the spot.

5. Technical and Managerial Know-How:

The scope of international marketing also includes the technical and managerial know-
how provided by the exporting company to the importing company. The technicians and
managerial personnel of the exporting company guide and train the technicians and
managers of the importing company.